(Bloomberg) -- Bonds from Puerto Rico’s record $3.5 billion general-obligation sale accounted for one-third of the tradingvolume of the entire $3.7 trillion municipal market on the day of their issue.

Underwriters led by Barclays Plc priced the tax-free bonds on March 11 to yield 8.73%, or 93 cents on the dollar. It was the biggest junk-rated deal in the municipal market’s history. Hedge funds were the majority of buyers, with traditional muni investors also participating, said David Chafey, chairman of the Government Development Bank, which handles the commonwealth’s debt sales.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access